Here's an update on the market since my last post.

The SPY continued higher breaking out past the green line I was looking at as resistance. It then pulled back to retest the broken resistance finding some support on Friday 6-13-14. The Spy currently sits near the top of its monthly channel.

Zooming in to the 15min chart, the SPY has created a potential Island-Reversal topping pattern. This pattern happens when price gaps up, trades in a tight range for a little while, then gaps down. This pattern implies buyer exhaustion and reversal in trend. You can see monday created a perfect ^ shaped blow off top as sellers began to overtake buyers.The major moving averages on the 15min chart are beginning to cross over each other with a 20/50, followed by 50/100, followed by 100/200.

The NASDAQ Composite broke through the potential right shoulder I was looking at and found resistance near the previous highs. A potential double top pattern is still in play.

Interestingly the ETF for the Russell, IWM is currently in a H&S pattern similar to the NASDAQ a couple weeks ago. Small caps have been lagging the larger cap indexes lately and it will be interesting to see if this pattern resolves the same as the NASDAQ Composite or if the H&S actually plays out this time.

Bullish to Bearish Investors sentiment remains elevated in record levels of bullishness. If there is an excuse to take profits the majority seems to not be seeing it, or simply doesn't care as the bulls and dip buyers for the most part continue to rake in profits.

This chart is indicating that American Real GDP Growth appears to be contracting on average for 14 years. If Fed intervention was supposed to turbocharge growth, we clearly haven't been seeing too much of it, especially with that Q1 2014 negative GDP Print.

The Schiller Ratio, which measures P/E ratios adjusted for inflation. Remains elevated at levels only seen during 3 times in history, all of which preceded major stock market crashes. Today 6-13-2014 it was at 26.06. You can check the current ratio here www.multpl.com/shiller-pe/ If P/E multiples are so 'cheap' here I wonder how 'expensive' they would look with no stock buyback programs running?

In other news Iraq is going nuts with extreme turmoil as ISIS terrorist groups overtake the country. What an awful pointless war we got ourselves in. We gained nothing but casualties, and now there seems to be more chaos and instability there than before we ever got involved. Well played America!Investors seem to be shrugging off the chaos for the most part as they have every other piece of bad news. We had a weak retail sales number coming in at 0.3% vs forecast 1.3%. The Producer Price Index (PPI) came in at -0.2% vs forecast 0.2% To be honest I'm not so sure that any of those economic numbers even really matter to price action. From my experience these numbers are almost irrelevant as the market does whatever it wants to do, although sometimes these numbers can be used to an excuse to buy or sell if people are looking for an excuse to take a trade.

So the bull clearly is not dead yet. Investors continue to ignore any bad news thrown in front of them. I am still in the bearish camp however and would personally feel more comfortable holding short positions than long positions at these historically elevated levels. The old Buffett axiom comes to mind 'Be fearful when others are greedy and greedy when others are fearful.' There is certainly no shortage of Greed with CNN Fear/Greed Meter Staying highly elevated all week and ending the week at an 87.

I'll leave it with a monthly chart of the VIX near record lows.

It's easy to get complacently long when the market seems to shrug off any and all bad news and grinds higher seemingly daily but I can assure you there will come a time when people will once again see volatility. When that time comes? Who knows? All I know is that it definitely hasn't happened yet...Good Luck with your trades, Thanks for reading!